The €1.1 billion writedown includes a loss of €817 million in subprime assets and €380 million linked to US monolines, whose counterparties include MBIA (51% of economic exposures), XL (14%) and Assured (11%).
In a statement of estimated results for 2007, released February 14, the bank said: “The writedowns should not be considered sure losses but rather as a value adjustment of portfolios resulting from market conditions.” As a precautionary measure, the bank has also included exposures to the mid-prime segment in its December 31 figures. As of September 30, 2007, the bank had a total of €1.5 billion exposure to US subprime loans.
These writedowns reduce Natixis's profits for the year to about €1 billion, from € 2.1 billion the previous year. The bank will publish the full results on March 6, 2008.See also : Natixis reports €407 million in crisis damage
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